CGI Group (GIB) Buys Paragon Solutions In All-Cash Deal

CGI Group Inc. (NYSE:GIB) recently announced the acquisition Paragon Solutions, Inc. in an all-cash deal.

Paragon Solutions is a consultancy firm with in-depth knowledge on health and life sciences. The company delivers better business outcome which helps companies to stay digitally connected. The buyout is aimed to provide a boost to CGI Group’s capabilities to serve customers better.

Following the acquisition, CGI Group will gain consultancy facilities including research and development, along with manufacturing and enterprise support services. The buyout of Paragon strengthens CGI Group's position in the main metropolitan growth region surrounding the Greater New York City/New Jersey and Philadelphia metro markets.

The acquisition adds more than 300 professionals to the company in the United States, which accounts for more than 12,000 of its total (71,000) professionals.

According to David L. Henderson, CGI Group President of U.S. operations for Commercial and State Government, "The merger with Paragon better positions CGI, locally and globally, to serve the healthcare ecosystem end-to-end for payers, providers and life sciences enterprises."

We believe that the company will continue to pursue strategic acquisitions that will not only expand its product portfolio but also strengthen competitive position.

CGI Group is an independent information technology and business process services firm, with about 69,000 employees across the United States, Europe and the Asia Pacific. The company’s services include high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management and a variety of proprietary solutions.

Shares of the company have gained 10.9% on a year-to-date basis, underperforming 25.5% growth recorded by the industry it belongs to.

Currently, CGI Group currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the technology sector worth considering are NVIDIA Corporation (NASDAQ:NVDA) , DXC Technology Company (NYSE:DXC) and Intel Corporation (NASDAQ:INTC) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA, DXC Technology and Western Digital (NASDAQ:WDC) have a long-term EPS growth rate of 10.2%, 10.5%, 8.4%, respectively.

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